What’s the Difference Between a Will and a Trust?
When it comes to estate planning, most people think of a will. But did you know a trust might be a better choice—especially for retirees? Wills only take effect after death and usually involve probate. A trust, on the other hand, can offer more privacy, flexibility, and control over your assets—during your lifetime and beyond.
Why a Trust Might Be Better for Retirees
A trust can:
- Avoid the long and costly probate process
- Keep your affairs private
- Protect your wishes if you become incapacitated
- Give you more control over how and when your assets are distributed
You don’t need to be wealthy to benefit from a trust—it’s about control and protection, not just money.
Types of Trusts in Plain English
Revocable Living Trust
- Lets you manage your assets during your lifetime
- You can change or cancel it at any time
- Avoids probate
Irrevocable Trust
- Cannot be changed after it’s created
- Often used to reduce estate taxes
Pros and Cons: Trusts vs. Wills
| Feature | Will | Trust |
|---|---|---|
| Goes into effect | After death | Can start during your lifetime |
| Probate | Required | Often avoids probate |
| Privacy | Public record | Usually private |
| Control during incapacity | No | Yes |
| Costs | Lower upfront | Higher upfront, but can save later |
Choosing a Trustee: What Retirees Should Know
Your trustee will manage your assets and carry out your wishes. You can name:
- A family member
- A trusted friend
- A professional (corporate trustee)
Talk to them in advance so they know what to expect and where to find your documents.
FAQs About Estate Planning for Retirees
What’s the difference between a trust and a will?
A trust avoids probate and offers more control. A will goes through court and only works after death.
Do I need a trust if I have a will?
Maybe. Trusts are useful if you want to plan for incapacity or avoid probate in multiple states.
How much does it cost?
A simple trust may cost a few thousand dollars, but it can save your family stress and money later.
How Decima Wealth Consulting Can Help
While Decima Wealth Consulting doesn’t give legal advice, we can:
- Educate you about estate planning,
- Help set up trust accounts,
- Coordinate with your financial goals,
- Connect you with a professional who specializes in trust and estate matters.
- Get our free checklist here!
This guide is for educational purposes only. Not intended for financial or legal advice.
